Gaza Disengagement Plan:
Text of the Sharon Plan

(April 2004)

1.
General

Israel is committed to the peace process and aspires
to reach an agreed resolution of the conflict on the basis of the principle
of two states for two peoples, the State of Israel as the state of the
Jewish people and a Palestinian state for the Palestinian people, as
part of the implementation of President Bush's vision.

Israel is concerned to advance and improve the current
situation. Israel has come to the conclusion that there is currently
no reliable Palestinian partner with which it can make progress in a
bilateral peace process. Accordingly, it has developed a plan of unilateral
disengagement, based on the following considerations:

i. The stalemate dictated by the current situation
is harmful. In order to break out of this stalemate, Israel is required
to initiate moves not dependent on Palestinian cooperation.

ii. The plan will lead to a better security situation,
at least in the long term.

iii. The assumption that, in any future permanent
status arrangement, there will be no Israeli towns and villages in the
Gaza Strip. On the other hand, it is clear that in the West Bank, there
are areas which will be part of the State of Israel, including cities,
towns and villages, security areas and installations, and other places
of special interest to Israel.

iv. The relocation from the Gaza Strip and from Northern
Samaria (as delineated on Map) will reduce friction with the Palestinian
population, and carries with it the potential for improvement in the
Palestinian economy and living conditions.

v. The hope is that the Palestinians will take advantage
of the opportunity created by the disengagement in order to break out
of the cycle of violence and to reengage in a process of dialogue.

vi. The process of disengagement will serve to dispel
claims regarding Israel's responsibility for the Palestinians in the
Gaza Strip.

vii. The process of disengagement is without prejudice
to the Israeli-Palestinian agreements. Relevant arrangements shall continue
to apply.

When there is evidence from the Palestinian side of
its willingness, capability and implementation in practice of the fight
against terrorism and the institution of reform as required by the Road
Map, it will be possible to return to the track of negotiation and dialogue.

2. Main elements

i. Gaza Strip:

Israel will evacuate the Gaza Strip, including all existing
Israeli towns and villages, and will redeploy outside the Strip.
This will not include military deployment in the area of the border
between the Gaza Strip and Egypt ("the Philadelphi Route")
as detailed below.

Upon completion of this process, there shall no longer be any
permanent presence of Israeli security forces or Israeli civilians
in the areas of Gaza Strip territory which have been evacuated.

As a result, there will be no basis for claiming that the Gaza
Strip is occupied territory.

ii. West Bank:

Israel will evacuate an Area in the Northern Samaria Area (see
Map), including 4 villages and all military installations, and
will redeploy outside the vacated area.

Upon completion of this process, there shall no longer be any
permanent presence of Israeli security forces or Israeli civilians
in the Northern Samaria Area.

The move will enable territorial contiguity for Palestinians
in the Northern Samaria Area.

Israel will improve the transportation infrastructure in the
West Bank in order to facilitate the contiguity of Palestinian
transportation.

The process will facilitate Palestinian economic and commercial
activity in the West Bank.

The Security fence: Israel will continue to build the security
fence, in accordance with the relavent decisions of the government.
The route will take into account humanitarian considerations.

3. Security situation
following the disengagement

i. The Gaza Strip:

Israel will guard and monitor the external land perimeter of
the Gaza Strip, will continue to maintain exclusive authority
in Gaza air space, and will continue to exercise security activity
in the sea off the coast of the Gaza Strip.

The Gaza Strip shall be demilitarized and shall be devoid of
weaponry, the presence of which does not accord with the Israeli-Palestinian
agreements.

Israel reserves its inherent right of self defense, both preventive
and reactive, including where necessary the use of force, in respect
of threats emanating from the Gaza Strip.

ii. The West Bank:

Upon completion of the evacuation of the Northern Samaria Area,
no permanent Israeli military presence will remain in this area.

Israel reserves its inherent right of self defense, both preventive
and reactive, including where necessary the use of force, in respect
of threats emanating from the Northern Samaria Area.

In other areas of the West Bank, current security activity will
continue. However, as circumstances permit, Israel will consider
reducing such activity in Palestinian cities.

Israel will work to reduce the number of internal checkpoints
throughout the West Bank.

4. Military Installations
and Infrastructure in the Gaza Strip and Northern Samaria

In general, these will be dismantled and removed, with the exception
of those which Israel decides to leave and transfer to another party.

5. Security assistance
to the Palestinians

Israel agrees that by coordination with it, advice,
assistance and training will be provided to the Palestinian security
forces for the implementation of their obligations to combat terrorism
and maintain public order, by American, British, Egyptian, Jordanian
or other experts, as agreed with Israel. No foreign security presence
may enter the Gaza Strip or the West Bank without being coordinated
with and approved by Israel.

6. The border area
between the Gaza Strip and Egypt (Philadelphi Route)

Initially, Israel will continue to maintain a military
presence along the border between the Gaza Strip and Egypt (Philadelphi
route). This presence is an essential security requirement. At certain
locations security considerations may require some widening of the area
in which the military activity is conducted.

Subsequently, the evacuation of this area will be
considered. Evacuation of the area will be dependent, inter alia, on
the security situation and the extent of cooperation with Egypt in establishing
a reliable alternative arrangement.

If and when conditions permit the evacuation of this
area, Israel will be willing to consider the possibility of the establishment
of a seaport and airport in the Gaza Strip, in accordance with arrangements
to be agreed with Israel.

7. Israeli towns
and villages

Israel will strive to leave the immovable property
relating to Israeli towns and villages intact. The transfer of Israeli
economic activity to Palestinians carries with it the potential for
a significant improvement in the Palestinian economy. Israel proposes
that an international body be established (along the lines of the AHLC),
with the agreement of the United States and Israel, which shall take
possession from Israel of property which remains, and which will estimate
the value of all such assets.

Israel reserves the right to request that the economic
value of the assets left in the evacuated areas be taken into consideration.

8. Civil Infrastructure
and Arrangements

Infrastructure relating to water, electricity, sewage
and telecommunications serving the Palestinians will remain in place.
Israel will strive to leave in place the infrastructure relating to
water, electricity and sewage currently serving the Israeli towns and
villages. In general, Israel will enable the continued supply of electricity,
water, gas and petrol to the Palestinians, in accordance with current
arrangements. Other existing arrangements, such as those relating to
water and the electro-magnetic sphere shall remain in force.

9. Activity of International
Organizations

Israel recognizes the great importance of the continued
activity of international humanitarian organizations assisting the Palestinian
population. Israel will coordinate with these organizations arrangements
to facilitate this activity.

10. Economic arrangements

In general, the economic arrangements currently in
operation between Israel and the Palestinians shall, in the meantime,
remain in force. These arrangements include, inter alia:

i. the entry of workers into Israel in accordance
with the existing criteria.

ii. the entry and exit of goods between the Gaza
Strip, the West Bank, Israel and abroad.

iii. the monetary regime.

iv. tax and customs envelope arrangements.

v. postal and telecommunications arrangements.

In the longer term, and in line with Israel's interest
in encouraging greater Palestinian economic independence, Israel expects
to reduce the number of Palestinian workers entering Israel. Israel
supports the development of sources of employment in the Gaza Strip
and in Palestinian areas of the West Bank.

11. Erez Industrial
Zone

The Erez industrial zone, situated in the Gaza Strip,
employs some 4000 Palestinian workers. The continued operation of the
zone is primarily a clear Palestinian interest. Israel will consider
the continued operation of the zone on the current basis, on two conditions:

i. The existence of appropriate security arrangements.

ii. The express recognition of the international community
that the continued operation of the zone on the current basis shall
not be considered continued Israel control of the area.

Alternatively, the industrial zone shall be transferred
to the responsibility of an agreed Palestinian or international entity.

Israel will seek to examine, together with Egypt,
the possibility of establishing a joint industrial area in the area
between the Gaza Strip, Egypt and Israel.

12. International
passages

i. The international passage between the Gaza Strip
and Egypt

The existing arrangements shall continue.

Israel is interested in moving the passage to the "three
borders" area, approximately two kilometers south of its current
location. This would need to be effected in coordination with Egypt.
This move would enable the hours of operation of the passage to
be extended.

ii. The international passages between the West Bank
and Jordan:

The existing arrangements shall continue.

13. Erez Crossing
Point

The Israeli part of Erez crossing point will be moved
to a location within Israel in a time frame to be determined separately.

14. Timetable

The process of evacuation is planned to be completed
by the end of 2005. The stages of evacuation and the detailed timetable
will be notified to the United States.

15. Conclusion

Israel looks to the international community for widespread
support for the disengagement plan. This support is essential in order
to bring the Palestinians to implement in practice their obligations
to combat terrorism and effect reforms, thus enabling the parties to
return to the path of negotiation.

U.S.
obligations as part of the disengagement plan [as interpreted by the
Prime Ministers Office]

Preserving the Government's fundamental principle, according to
which no political process with the Palestinians will take place
before the dismantling of terror organizations, as requested by
the roadmap.

American commitment that no political pressure will be exerted
on Israel to adopt any political plan, other than the roadmap, and
that there will be no political negotiations with the Palestinians
as long as they do not fulfill their commitments under the roadmap
(full cessation of terror, violence and incitement; dismantling
terror organizations; leadership change and carrying out comprehensive
reforms in the Palestinian Authority).

Unequivocal American recognition of Israel's right to secure and
recognized borders, including defensible borders.

American recognition of Israel's right to defend itself, by itself,
anywhere, and preserve its deterrence power against any threat.

American recognition in Israel's right to defend itself against
terror activities and terror organizations wherever they may be,
including in areas from which Israel has withdrawn.

Unequivocal American stand regarding the refugees, according to
which there will be no return of refugees to Israel.

American stand that there will be no return to the 1967 borders,
for two primary considerations: major Israeli population centers
and the implementation of the term defensible borders.

American stand, according to which the major Israeli population
centers will be part of Israel, in any event. All the remaining
areas in Judea & Samaria will be open for negotiation.

The United States sets clear conditions for the establishment
of a future Palestinian state and declares that the Palestinian
state will not be created as long as the terror organizations have
not been dismantled, as long as the leadership has not been replaced
and no comprehensive reforms have been completed in the Palestinian
Authority.

2. President
Bush's letter to the Prime Minister and the Prime
Minister's letter to President Bush constitute part of the overall
disengagement plan, and these understandings with the United States
will only be valid if the disengagement plan is approved by Israel.
The exchange of letters between President Bush and the Prime Minister,
as well as the letter by the Chief of the Prime Minister's Bureau to
the U.S. National Security Adviser, are attached to this plan as an
integral part of it.